The SPDR Gold Shares (GLD) and the Energy Select Sector SPDR Fund (XLE) are both among the Top 100 ETFs. GLD is a SPDR State Street Global Advisors N/A fund and XLE is a SPDR State Street Global Advisors Equity Energy fund. So, what’s the difference between GLD and XLE? And which fund is better?
The expense ratio of GLD is 0.28 percentage points higher than XLE’s (0.4% vs. 0.12%). GLD also has a lower exposure to the technology sector and a lower standard deviation. Overall, GLD has provided higher returns than XLE over the past ten years.
In this article, we’ll compare GLD vs. XLE. We’ll look at holdings and portfolio growth, as well as at their annual returns and performance. Moreover, I’ll also discuss GLD’s and XLE’s fund composition, risk metrics, and industry exposure and examine how these affect their overall returns.
|Name||SPDR Gold Shares||Energy Select Sector SPDR Fund|
|Issuer||SPDR State Street Global Advisors||SPDR State Street Global Advisors|
The SPDR Gold Shares (GLD) is a N/A fund that is issued by SPDR State Street Global Advisors. It currently has 59.26B total assets under management and has yielded an average annual return of 5.81% over the past 10 years. The fund has a dividend yield of 0.0% with an expense ratio of 0.4%.
The Energy Select Sector SPDR Fund (XLE) is a Equity Energy fund that is issued by SPDR State Street Global Advisors. It currently has 25.55B total assets under management and has yielded an average annual return of 1.28% over the past 10 years. The fund has a dividend yield of 3.92% with an expense ratio of 0.12%.
GLD’s dividend yield is 3.92% lower than that of XLE (0.0% vs. 3.92%). Also, GLD yielded on average 4.53% more per year over the past decade (5.81% vs. 1.28%). The expense ratio of GLD is 0.28 percentage points higher than XLE’s (0.4% vs. 0.12%).
The SPDR Gold Shares (GLD) has the most exposure to the Technology sector at 0.0%. This is followed by Industrials and Energy at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.
GLD’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Energy stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.
The Energy Select Sector SPDR Fund (XLE) has the most exposure to the Energy sector at 100.0%. This is followed by Technology and Industrials at 0.0% and 0.0% respectively. Consumer Cyclical (0.0%), Financial Services (0.0%), and Real Estate (0.0%) only make up 0.00% of the fund’s total assets.
XLE’s mid-section with moderate exposure is comprised of Consumer Defensive, Healthcare, Utilities, Communication Services, and Industrials stocks at 0.0%, 0.0%, 0.0%, 0.0%, and 0.0%.
GLD is 0.00% less exposed to the Technology sector than XLE (0.0% vs 0.0%). GLD’s exposure to Industrials and Energy stocks is 0.00% lower and 100.00% lower respectively (0.0% vs. 0.0% and 0.0% vs. 100.0%). In total, Consumer Cyclical, Financial Services, and Real Estate also make up 0.00% less of the fund’s holdings compared to XLE (0.00% vs. 0.00%).
GLD’s Top Holdings are Gold Trust, N/A, N/A, N/A, and N/A at 100.0%, 0%, 0%, 0%, and 0%.
N/A (0%), N/A (0%), and N/A (0%) have a slightly smaller but still significant weight. N/A and N/A are also represented in the GLD’s holdings at 0% and 0%.
|Exxon Mobil Corp||23.7%|
|EOG Resources Inc||4.46%|
|Marathon Petroleum Corp||4.17%|
|Pioneer Natural Resources Co||4.08%|
|Kinder Morgan Inc Class P||3.85%|
|Williams Companies Inc||3.5%|
XLE’s Top Holdings are Exxon Mobil Corp, Chevron Corp, ConocoPhillips, EOG Resources Inc, and Schlumberger Ltd at 23.7%, 20.03%, 4.64%, 4.46%, and 4.43%.
Marathon Petroleum Corp (4.17%), Pioneer Natural Resources Co (4.08%), and Phillips 66 (4.07%) have a slightly smaller but still significant weight. Kinder Morgan Inc Class P and Williams Companies Inc are also represented in the XLE’s holdings at 3.85% and 3.5%.
The SPDR Gold Shares (GLD) has a Alpha of 3.91 with a R-squared of 16.21 and a Treynor Ratio of 1.21. Its Sharpe Ratio is 0.12 while GLD’s Mean Return is 0.21. Furthermore, the fund has a Standard Deviation of 16.58 and a Beta of 0.48.
The Energy Select Sector SPDR Fund (XLE) has a Standard Deviation of 27.52 with a Beta of 1.54 and a Sharpe Ratio of 0.12. Its Mean Return is 0.32 while XLE’s R-squared is 61.84. Furthermore, the fund has a Alpha of -11.98 and a Treynor Ratio of -0.4.
GLD’s Mean Return is 0.11 points lower than that of XLE and its R-squared is 45.63 points lower. With a Standard Deviation of 16.58, GLD is slightly less volatile than XLE. The Alpha and Beta of GLD are 15.89 points higher and 1.06 points lower than XLE’s Alpha and Beta.
GLD had its best year in 2010 with an annual return of 27.25%. GLD’s worst year over the past decade yielded -28.09% and occurred in 2013. In most years the SPDR Gold Shares provided moderate returns such as in 2012, 2016, and 2011 where annual returns amounted to 5.26%, 8.69%, and 11.2% respectively.
The year 2016 was the strongest year for XLE, returning 27.95% on an annual basis. The poorest year for XLE in the last ten years was 2020, with a yield of -32.56%. Most years the Energy Select Sector SPDR Fund has given investors modest returns, such as in 2017, 2011, and 2012, when gains were -1.01%, 2.98%, and 5.17% respectively.
|Fund||Initial Balance||Final Balance||CAGR|
A $10,000 investment in GLD would have resulted in a final balance of $16,395. This is a profit of $6,395 over 11 years and amounts to a compound annual growth rate (CAGR) of 5.81%.
With a $10,000 investment in XLE, the end total would have been $9,339. This equates to a $-661 profit over 11 years and a compound annual growth rate (CAGR) of 1.28%.
GLD’s CAGR is 4.53 percentage points higher than that of XLE and as a result, would have yielded $7,056 more on a $10,000 investment. Thus, GLD outperformed XLE by 4.53% annually.
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